And while it may seem an attractive opportunity for Carrefour, the real beneficiary looks to be investment fund group Gama, which is financed by the Brazilian government and ultimately CBD and its owner Albino Diniz.

If successful, the plan would turn Gama into Carrefour’s biggest shareholder with a stake that could ultimately represent as much as 17.7% of its equity capital. Gama would sign a shareholder pact with Blue Capital, which currently owns 14.1% in Carrefour’s equity and 20.2% of voting rights.

Blue Capital, which is jointly owned by French billionaire and LVMH’s owner Bernard Arnault and investment fund Colony Capital, never managed to achieve its goal of turning around Carrefour’s share price, after buying a 14% stake in the retailer four years ago. Eventually, it’s possible Blue Capital could try to sell its stake.

Tying up Carrefour and CBD would create the undisputed leader of Brazil’s retailing sector, with a 30% market share, according to trading firm Aurel BCG’s analysts. It would also increase Carrefour’s exposure to emerging markets with strong economic growth, something the group has been missing as it struggles with a sluggish market at home in France.